Gus Fitzgerald, a local shipping tycoon, is very confused. He has issued stock to finance a positive

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Gus Fitzgerald, a local shipping tycoon, is very confused. He has issued stock to finance a positive NPV investment. He expected the stock price to rise, as positive NPV projects are supposed to increase shareholder value. However, the stock price fell! Explain how this is possible in an efficient market.

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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